Unilever PLC operates as a fast-moving consumer goods company. It operates through Beauty & Personal Care, Foods & Refreshment, and Home Care segments. The Beauty & Personal Care segment provides skin care and hair care products, deodorants, and skin cleansing products. The Foods & Refreshment segment offers ice cream, soups, bouillons, seasonings, mayonnaise, ketchups, and tea categories. The Home Care segment provides fabric solutions and various cleaning products. The company offers its products under the Domestos, OMO, Seventh Generation, Ben & Jerry’s, Knorr, Magnum, Wall’s, Bango, the Vegetarian Butcher, Axe, Cif, Comfort, Dove, Lifebuoy, Lux, Rexona, Sunsilk, Equilibra, OLLY, Liquid I.V., SmartyPants, Onnit, Hellmann’s, and Vaseline brands. Unilever PLC was incorporated in 1894 and is headquartered in London, the United Kingdom. This week, I fundamentally analyze Unilever’s stock. I review Unilever’s business segments, look at its key ratios, and derive the intrinsic value using Discounted Cash Flow (DCF) analysis. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.
After taking into account Unilever’s 2021 free cash flow of $7,238 million figure, a 6% growth rate of FCF (growth for the next 10 years), 10% discount rate, 3.1% long term growth rate (growth from 10 year mark in the future to perpetuity), 2,609 million shares outstanding, and $23,276 million of long term debt, the DCF analysis yields us an intrinsic value of $41.42 per share.
Timestamp
0:00 Introduction
0:25 Business Overview
6:52 Key Ratios Analysis
18:07 Discounted Cash Flow Analysis / Intrinsic Value
20:38 Conclusion
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References:
Unilever’s Website: here.
Morningstar Key Ratios Link: here.
Useful Resources here.
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